Contractor at odds with city over Holly Street Power Plant.
If, like us, you have grown weary of reading about how city officials have nailed yet another demolition contractor to the floor with a mix of rock-bottom pricing and unsustainable payment terms, then this story is for you.
The Austin City Council has been looking for a contractor to dismantle the Holly Street Power Plant. The power plant was built in an East Austin neighborhood in 1960. Over the past 50 years, the neighborhood has grown rapidly and residents say they’ve witnessed noise, pollution and even fires. In 1995, the city council passed a resolution to close the plant, and in 2007, it shut down permanently. The structure still remains, but now city officials hope to find a contractor to deconstruct the building and clean up the land.
The city’s estimated budget for the project is set at $10 million, with the exception of value taken from any of the materials that are salvaged. But the recommended bid has come in at around $25 million, leaving city officials facing something of a dilemma as well as threats of legal action.
CST Environmental, one of the six firms that submitted a bid, has filed a protest with the city. Attorney Tom Nesbitt said the city is spending more taxpayer money than it needs to. “We had a city council that had to make a tough decision to cut the Trail of Lights because of concerns over the budget,” Nesbitt said. “And now the city staff is recommending that the city council spend $11 million more than it needs to in order to take down Holly Street.”
Read more and view a video here.
